IOOF chief executive Renato Mota heralded a “new era of wealth management in Australia” in which the big four banks are no longer the dominant owners of financial advice and retail superannuation operations.
“Today we become a new IOOF,” said chief executive Renato Mota. “We have the strategic intent, the talent, and now the scale, to deliver our advice-led wealth management proposition to more Australians than ever before.”
The combined entity will leapfrog AMP as Australia’s largest provider of financial advice, with 406 NAB-aligned financial planners joining IOOF’s licences on Tuesday, representing 84 per cent of the bank’s financial advisory workforce.
It will also be among the largest superannuation trustees and leader in the $840 billion market for wealth management platforms, used by financial advisers to manage assets and monitor client portfolios.
Former MLC manager Garry Mulcahy will join IOOF’s executive leadership team. IOOF has also hired AustralianSuper’s Sawsan Howard as chief corporate affairs and marketing officer to replace Rachel Scully, who has joined agricultural chemical company Nufarm.
The Australian Prudential Regulation Authority approved IOOF’s application to hold a controlling stake in Nulis Nominees, the superannuation trustee business within MLC, in May.
The Australian Competition and Consumer Commission gave its approval to the merger in December, concluding that despite the significant “profile and size” of the transaction that the combined group would face serious competition from industry super funds.